Rebuild 2.5 or replace with 4.0

Greetings.  And I need some advice for an 88 Wrangler project.

2.5 has broken block and I either must replace the 2.5 or perhaps upgrade to 4.0.  Any thoughts would be appreciated.

Also, if I decide on 4.0, what must be changed to accomplish this?

Currently has manual tran - I have parts for new clutch, master cyl and slave - and new exhaust system to manifold on 2.5.  

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since you have some parts and are already familiar with the 2.5 i would stick with it. the newer ones have more get up and love to be taken to 4000-5000 rpm. add a throttle body spacer and a k&N air filter and your new exhaust and u are pretty much done. you will save your pocket book not only because the 2.5 is cheaper but also gets better fuel economy. i have had 3 jeeps with the 4cyl and have had no complaints with any of them. i also have had a straight six and the v6. the straigt six is awesome and some day i would like another jeep with one or maybe a v8. do you know what the jeep is going to be for? daily driver, weekend warrior, rocks, mud? these are the questions you have to ask before you start its always a good place to start. if you do decide on the 4.0 you will need to change the 5 speed tranny. motor mounts, wiring harness, computer, i would also change the 15 gallon tank for the 18gal or an after market i have seen some with 24 gal capacity. if your jeep is high miles or hard miles off road i would swap axles also. you could probably keep the t-case, but if you replace all the other stuff why not that to and the add a klune v for super slow crawling. by the way you can add the klune v to your 4cyl easier and u only nee to have the front drive shaft lengthened, unless you got more than a 2 inch lift. well good luck and build the jeep to your needs whatever that may be........